Continue reading “$GME: A Single Security Exhibiting Idiosyncratic Risk”

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u/Dr_Gingerballs writes:

Howdy Ape-areenos,

I just got around to watching the 2 part GME series on HBO MAX titled Gaming Wall Street, and it was refreshing to see our side of the story told authentically after a year of gaslighting by the media. I know that the issue is complicated and it’s hard to create and sustain a captive audience around complex financial instruments. However, it did not sit well with me that I finished the series with no real idea of any tangible, targeted requests that the general public could make to reform wall street. Sending a letter to your senator saying the market is corrupt and it needs reform is simply too vague to take action. It also did not sit well with me that the story ended with the narrator throwing up their hands and saying that maybe Melvin swapped out the liability somehow, and no one really knows what is going on. I think the research done in this sub paints a pretty compelling picture of what happened, and there are signatures of it all over the data that we do have access to.

I hope that this post sheds more light on these swaps, and allows the broader community to begin to understand what is going on here. This work builds off of some great DD by others in the community, namely u/Zinko83 and u/Mauerastronaut on variance swaps. As with all of my posts, it would not be possible without the efforts of the group of people that u/Gherkinit compiled in the community to investigate the derivatives used on GME. Without the rule documenting, data collecting, and derivative investigating done by this group, I would not be able to write this post.

Let’s start where the documentary left off.

Continue reading “Let’s All Dance the Melvin Superswap”